Russian president Vladimir Putin is "deeply concerned" by Donald Trump's decision to recognise Jerusalem as the Israeli capital, the Kremlin said in a statement Thursday.

In a telephone conversation with Turkish President Recep Tayyip Erdogan, Putin called for the Palestinians and Israel to "hold back" and renew negotiations.

"This kind of measure can block possible paths to peace in the Middle East," the Kremlin said of US President Trump's move.

Trump's defiant announcement, making good on a core campaign pledge, ended seven decades of US ambiguity on the status of the Holy City, which is vociferously claimed by both Israelis and Palestinians.